Commerce and Industry Minister Mr Partha Chatterjee said that West Bengal will conduct an auction for the sale of its stake in Haldia Petrochemicals adding that co promoter The Chatterjee Group will be allowed to match the highest offer before any transaction is finalised.

Mr Chatterjee told PTI that "We will first go for an open bidding for the Haldia Petrochemicals Ltd (HPL) shares held by the government. Then the highest bid price would be offered to TCG for exercising their first right of refusal.”

He said that "If TCG refuses to buy the shares at that price, then the shares will be offered to the highest bidder.”

The government, he said, would seek to get the maximum return on its investment in HPL. He added that "This is why we will take the open bidding route.”

Earlier, TCG chief Mr Purnendu Chatterjee had said the government should allow it to exercise the first right of refusal as per the agreement reached between the two promoters.

In the last board meeting of HPL, the two promoters had mutually agreed to sort out the issue through dialogue.

Mukesh Ambani-led Reliance Industries is believed to also be interested in the West Bengal government's stake in Haldia Petrochemicals.

The company's earnings have taken a hit due to lower margins and high price of naphtha and the state government is keen to make an exit from the company at the earliest possible opportunity.

The government has already appointed SBI Capital Markets to carry out a valuation of HPL shares. A small internal team of the government had also been formed for the purpose.

(Sourced from PTI)